Legal Updates 7

USING “COMPANY” AND “ENTERPRISE” FOR BUSINESS HOUSEHOLD’S NAMES IS PROHIBITED

This is one of the contents regulated under the Circular No.01/2013/TT-BKHDT dated January 21, 2013 of the Ministry of Planning and Investment guiding the enterprise registration.

Accordingly, business households may not use the word “company” and “enterprise” in their names. Names of business households are in the alphabet used for naming business households as prescribed. This Circular also contains some important regulations on updating information about local enterprises in the National Enterprise Registration Database. Accordingly, the Ministry of Planning and Investment requested that every quarter and every year, based on the information about local enterprise registration, and existing information in the National Enterprise Registration Database, Provincial Business Registration Offices are responsible for reviewing and comparing with the local information to convert and update the missing information in the National Enterprise Registration Database. This Circular takes effect on April 15, 2013 and supersedes the Circular No. 14/2010/TT-BKH dated June 04th 2010 of the Ministry of Planning and Investment.

PROLONG DURATION OF EIT PAYMENT AND VAT 06 MONTHS

On February 08, 2013, the Ministry of Finance issued the Circular No. 16/2013/TT-BTC guiding implementation of the extension of time limits, reduction of a number of state budget revenues according to the Government’s Resolution No. 02/NQ-CP, of January 07, 2013 on a number of solutions to remove difficulties for business production, market support, settlement of bad debts.

Accordingly, medium and small-sized enterprises, Intensive-labour enterprises (more than 300 laborers) in production or processing fields of: Agricultural products, forestry products, aquatic products, textile and garment, leather and footwear…and enterprises of housing business investment are prolonged duration of enterprise income tax payment for 06 months applying to payable enterprise income tax amounts of quarter I and duration of enterprise income tax payment for 03 months applying to payable enterprise income tax amounts of quarter II and quarter III of 2013. Therefore, duration of extension of tax payment time limit for the payable EIT amounts arising of quarter I, II of 2013 entitled to prolong tax payment time limit shall be not later than October 30, 2013. Duration of extension oftax payment time limit for the payable EIT amounts arising of quarter III of 2013 entitled to prolong tax payment time limit shall be not later than January 30, 2014. At the same time, these above enterprises performing VAT payment under deduction method will be also prolonged 06 months for value added tax (VAT) payment time limit for payable VAT amounts arising of January, February, March of 2013 (excluding VAT at import stage). At that time, The payment time limit of VAT arising in January 2013 shall be not later than August 20, 2013; in February 2013 shall be not later than September 20, 2013; in March 2013 shall be not later than October 21, 2013. Besides, the Ministry of Finance also decided to reduce 50% of the payable land rents arising in 2013, 2014 for economic organizations, households, individuals, who is leased land by the State through annual rent payment prior December 31, 2010, using land with right purpose, subject to adjust the unit price of land renting as prescribed in the Government’s Decree No. 121/2010/ND-CP, of December 03, 2010 and the land rents arising in 2013, 2014 increased more than twice in comparison with the land rents arising in 2010. If after being reduced, the payable land rents of 2013, 2014 are still more than twice of the payable land rents of 2010, they shall be entitled to continue reducing until the payable land rents of 2013, 2014 are equal twice of the payable amounts of 2010. This Circular takes effect on March 25, 2013

EXPENSE FOR SUPPORT TO SETTLE POLICY OF REDUNDANT EMPLOYEES

On January 18, 2013, the Ministry of Finance issued the Circular No. 10/2013/TT-BTC guiding the mechanism of management and use of fund for support of arrangement of enterprises at the parent company in the economic group, State Corporation, parent company in the parent company–subsidiaries conglomerate. Of which, one of the notable content is regulation on expense for support to settle policy of redundant employees.

Under this Circular, for the enterprises of equitization, business sale: the Fund only supports the funding to solve policy for redundant employees when the revenues are lack from equitization, sale of enterprises in accordance the law provisions and not enough to pay; For enterprises of dissolution, bankruptcy: the Fund only supports the funding when revenues from the dissolution, bankruptcy under the provisions of the law are not sufficient to address policy for redundant employees. Subjects are supported including: employees who are lost or leave their job; The titles of members of the Council of members, the company’s president, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, Controller of companies due to the implementation of the arrangement, conversion. The Circular clearly stated that enterprises receiving the funds are responsible for making payment to the employees and making report of funding settlement ass prescribed. After the time limit, if the units receiving funds have not performed the fund settlement report to the Fund, they shall have to send written explanation of the reason and shall have to complete report to send to the Fund for a period of not more than 30 days from the overdue date to submit report as prescribed. After 30 days, if the enterprises do not send fund settlement report, the Fund management Agency is responsible for enforcement, recovery of the funds supported.

This Circular takes effect from March 10, 2013 and replaces the Regulation on management and use of the Fund for support of enterprise arrangement in the Groups, the State Corporations, the parent companies issued together with the Decision No. 09/2008/QD-BTC dated January 31, 2008 of the Ministry of Finance

ESTABLISING DATABASE OF NATIONAL CREDIT INFORMATION

On January 28, 2013, the State Bank of Vietnam issued the Circular No. 03/2013/TT-NHNN providing on credit information activity of the State bank of Vietnam. One of the significant contents is regulation on the establishment of database of national credit information.

Under this Circcular, database of national credit information is a collection of credit information data and products of all kinds which are managed, saved and used on the information technology system. Credit information activity aims to create a database of national credit information in order to support the State bank of Vietnam in implementation of function on management and supervision of banking activity, contributing in assurance for safe Vietnam bank system; Credit institutions in risk prevention and limitation in business activity; Borrowers in accessing credit capital source of organizations of Credit extension, contributing in promotion for socio-economic development. Credit information activity aims to create a database of national credit information including: supply of credit information; Handling, storing of and keeping in safety for credit information; credit information use. For credit information use, the Circular also clearly points out that, borrowers are allowed to use on free their credit information once in year, including credit information activities: Information to identify the borrowers who are individuals, business households; information to identify the borrowers being enterprises, other organizations; information to identify the owners of credit card; The borrowers’ information of credit relationship; Information of account status of credit cards; Information of loan security.

This Circular takes affect from July 01, 2013 and replaces the Decision No. 51/2007/QD-NHNN, of December 31, 2007 of the Governor of the State bank on promulgation of Regulation on credit information activity.

BANKS MUST SELF-IMPLEMENT CLASSIFICATION OF DEBTS AT LEAST EACH QUARTER

This is the requirement under the Circular No. 02/2013/TTNHNN dated January 21, 2013 of the State Bank of Vietnam providing on classification of assets, levels and method of setting up of risk provisions, and use of provisions against credit risks in the banking activity of credit institutions, foreign banks’ branches. Under this Circular, at least each quarter for one times, within 15 (fifteen) first days of first month of each quarter, credit institutions, foreign banks’ branches must selfimplement classification of debts, off-balance sheet commitments which have arisen until the ending time of final working day of last quarter, based on the capability of customers to pay debts and send results of selfclassification of debts, off-balance sheet commitments to the Credit Information Center (CIC). The CIC shall summarize list of customers according to group of debts with highest risk extent. From that, credit institutions, foreign banks’ branches use result of classification of customer debt groups supplied by the CIC in order to adjust their result of classification of debts, off-balance sheet commitments; setting up sufficient provisions and use provisions for dealing with risks. Credit institutions, foreign banks’ branches implement classification of debts (excluding payments under offbalance sheet commitments) according to 05 groups as follows: standard debts group; debts, which need attention group includes debts which are restructured repayment term for the first time; debts which are overdue for a period of between 10 days and 90 days; sub-standard debts group; doubtful debts group and potentially irrecoverable debts group… Besides, the State Bank also requested that credit institutions, foreign banks’ branches must formulate the internal credit ranking system in order to rank customers periodically or as necessary, doing as basis for approval of credit extension, management of credit quality, formulation of policy on risk provisions in conformity with operational scope and actual situation of credit institutions, foreign banks’ branches… This Circular takes effect on June 01, 2013.

RESTRAINING THE EXTENSION OF CREDIT INSTITUTION NETWORK IN 2013

This is regulation under the Directive No. 01/CT-NHNN of the State Bank of Vietnam dated January 31, 2013 on organization to implement the monetary policy and assuranace of safe and effective banking operation in 2013. Of which, the notable content is requirement on strengthening examination, inspection, supervision of monetary market and banking activities.

Specifically, strengthen examination, inspection with respect to credit institutions, concentrating in the contents: Financial and ownership situation; transfer of shares; contributed capital, foreign currency and gold business; capital mobilization, inspection and supervision of risks of subjects of banking inspection and supervision in order to earlier detect, warn risk of each credit institution and whole system; strictly manage establishment of new credit institutions and extension of credit institution network; to restrain extension of credit institution network in urban areas; Besides, the State Bank also requested that credit organizations must implement solutions to expand credit effectively in order to support the economic growth at a reasonable level, contributing on controlling inflation, removing difficulties for production business, the market support such as: prioritize to concentrate capital in order to support loans in agriculture, production of exports, support industry; To consider to keep a rational quantity of capital on loans for subjects purchasing social house, enterprises changing the use of investment project to project on social house with a reasonable interest rate; At the same time, reduce maximally cost for management, advertisement, promotion and operation cost in order to have condition to reduce loaning interest rates aiming to share difficulties with borrowers. This Directive takes effect as from the day of signing.

WARRANT CONSTRUCTION WORKS AT LEAST 12 MONTHS

This is also the requirement of the Government for construction contractors and suppliers of material used in construction works under the Decree No. 15/2013/ND-CP dated February 06, 2013 on the quality management of construction works.

Accordingly, construction contractors and equipment suppliers are responsible for carrying out warranty for construction works and equipment. The warranty duration will be counted from the date that Investors sign the acceptance minutes to put construction works and items into use or based on the conditions specified in the construction contracts but not less than 24 months for works of special grade and grade I and not less than 12 months for works of other grades. For dwelling house, warranty is still implemented based on Article No. 74 of the Law on housing; Specifically, at least sixty months for condominiums of nine or more storey and houses of other types which are constructed with the state budget investment; At least thirty six months for condominiums of between four and eight storey; at least twenty four months for other types of houses. Besides, the Decree also guided in detail on classification and grading of incidents, reports of incidents. Specifically, based on the damage to human and property, incidents are graded into 4 levels, including: particularly serious level, level I, level II and level III. Immediately after incidents’ occurrence, Investors must briefly report to communal level People’s Committees and Investors’ senior agencies by the quickest way and Within 24 hours after the incidents occurred, Investors prepare and submit reports on incidents in writing to District-level and Provincial People’s Committees where facilities’ incidents occurred. At the same time, the dismantling and clearance of incident scenes must be conducted with the agreement of competent agencies under regulation and must satisfy the following requirements.

When the works is detected to have uninsured quality with the risk of collapse or to have unsafe construction method, State authorities on construction are entitled to temporarily stop the construction and then allow the construction to be continued only when Investors and contractors make good their shortcomings and assure the safety.This Decree takes effect on April 15, 2013, and replaces the Government’s Decree No. 209/2004/ND-CP dated December 16, 2004 and the Decree No. 49/2008/ND-CP dated April 18, 2008

THE PRIME MINISTER DECIDES ON INVESTMENT APPROVAL FOR PROJECTS OVER 100 HECTARES

On January 14, 2013, the Government issued the Decree No. 11/2013/ND-CP on the investment management of urban development. Of which, one of the notable contents is regulation on authority Authority to approve investment for project of new urban center construction investment. Specifically, under this Decree, The Prime Minister shall decide on investment approval after obtaining the appraisal opinion of the Ministry of Construction for the following cases: Project with the scale of land use from 100 hectares or more; Project within the administrative boundaries of two or more provinces or area having important implications on security and national defense. Besides, provincial-level People’s Committee shall decide on investment approval for the projects with the land use scale from 20 hectares to less than 100 hectares after obtaining written consent of the Ministry of Construction. At the same time, Provincial-level People’s Committee shall decide on investment approval of the remaining projects. Besides, the Decree also regulates in detail on conditions as being a project investor of urban center construction investment project. For investor as enterprise, apart from having registered business under the provisions of the Enterprise Law in accordance with the implementation of projects, they must have investment capital in its own not less than 15% of the total investment of the project of land use scale less than 20 hectares, not less than 20% of the total investment of the project of land use scale from 20 hectares or more for urban area investment construction projects; Having investment capital in its own not less than 20% of the total investment of project for the remaining projects…. This Decree takes effect from March 1, 2013 and replaces Decree No. 02/2006/ND-CP dated January 05, 2006 of the Government.

APEC BUSINESS TRAVEL CARDS SHALL BE VALID FOR 3 YEARS

On January 30, 2013, the Ministry of Public Security promulgates the Circular No. 07/2013/TT-BCA amending and supplementing a number of points in the Circular No. 27/2007/TT-BCA, of November 29, 2007 of the Ministry of Public Security guiding the issuance, amendment and supplementation of ordinary passports granted in the country and the Circular No. 10/2006/TT-BCA, of September 18, 2006, of the Ministry of Public Security guiding implementation of the Regulation on issuance and management of the APEC business travel cards. Under this Circular, the Ministry of Public Security regulated that Vietnamese business people who want to be re-issued the APEC business travel cards (ABTCs) must have ordinary passports with time limit of at least three years from the day of submission of dossier requesting for card issuance. ABTCs shall be valid for 3 years. Meanwhile, according to the previous regulations, APEC business travel cards which are valid in 3 years must depend on the remaining time of the passport). If a person requesting for re-issuance of ABTC due to expiration and agency, enterprise, where such person is working, has a written confirmation that there is no change of title and job position in comparison with previous time of request for card issuance, it is not required to submit a new written permission of ABTC use eligibility from competent authority.

Besides, the Circular also amends the guidelines on dossier, procedures of the initial issuance of passport, reissuance for children under 9 years old and under 14 years old in the separate passport or in the passport of mothers or fathers or some special cases in accordance with the Decree No. 65/2012/ND-CP dated September 06, 2012. Specifically, passports which is issued to citizens at 14 years old or older shall be valid for not more than 10 years from the day of issue and not be renewed; Passports which are issued separately to children under 14 years old or shared to children under 9 years old into passports of mothers or fathers shall be valid in 5 year from the day of issue and not be renewed; Passports of mothers or fathers, which are valid for over 5 years, in case of being supplemented children under 9 years old shall be adjusted into 5 year from the day of supplementation of such children; Common passports are not permitted expending.

Source: luatvietnam.vn

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